FAA may scrap airline tax

Flight tax could be scrapped as part of proposals due to be announced by the Federal Aviation Administration (FAA) today (Wednesday, February 14).

Detailed plans for a new next-generation air traffic control system will be unveiled to the public, as part of a $67 billion transport upgrade proposed earlier this month.

Vital to meet the future demands of a burgeoning aviation industry, according to the FAA, new satellite navigation technology will be expensive to implement, and any plans to abandon ticket tax would be counterbalanced by new levies, or passenger facility charges.

These extras are expected to hit corporate and private passengers hardest, particularly if the Air Transport Association (ATA) makes itself heard.

Commercial airlines are on track to pay for 93.7 percent of the new navigation system, but will only represent 68.1 percent of its use, points out the association. The argument is that corporate passengers should pay extra to correct this imbalance.

FAA plans include levies based on the size of plane, time of day, journey distance, and congestion rating of the route. Private fliers could be forced to pay up to three times as much fuel tax under the proposals.

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